Dear Mr. Addis,
Inclosure 3 in No. 1.
M. Rehders to Mr. C. S. Addis.
Deutsch-Asiatische Bank, Berlin, August 31, 1909. I WROTE you last on the 28th instant, and now beg to own receipt of your telegrams of the 28th and the 30th instant, as per enclosed; the latter one came to hand this morning only.
After having received from M. Cordès a telegram similar to yours, and after careful consideration, I was authorised to wire you as follows:-~~
"The readiness of German syndicate to give up rights obtained by preliminary agreement with Chinese of the 7th March depends upon getting engineering section, as agreed between groups, Berlin, the 14th May.
+4
Opening of negotiations for rearrangement of engineering sections would mean for us to revert to our agreement the 7th March, and to include also Hankow-Canton line into rearrangement. Extension of lines and loans will therefore be only way to satisfy American demands.”
If I am allowed to give a short history of the case, I have to state that on the 7th March our bank concluded with Changchitung an agreement for the money to be advanced to the Chinese Government for the construction of the Hankow-Canton Railway, Hupeh-Hunan section, and certain concessions were granted thereby to the German group; in particular, it had been arranged that the Germans should have the right to appoint the chief engineer, who had to supervise the construction of
the line.
Later on, at the proposals made by you and our French friends, an agreement was arrived at in Berlin on the 14th May, according to which the chief engineer for the Hankow-Canton Railway has to be appointed by the British and Chinese Corporation (Limited), the chief engineer for the Ichang-Hsiangyang-Huangchu line and the Ichang-Hanyang line to the length of about 800 kilom., to be appointed by the German group, &c.
If it now should turn out to be inevitable to rearrange the engineering sections of the whole Hankow-Chengtu line, then I must say it would only be fair that the Hankow Canton line should also fall in; anyhow, I am sure our syndicate would never consent to a-what I may call-one-sided rearrangement. If the intrusion of the Americans cannot be avoided, then all of us should suffer, and one party should not be left free.
May I still make another remark? According to our informations, it is beyond doubt that we have to thank Mr. Bland for all the troubles we have experienced with the Americans, for the latter had been quite ignorant of their pretended privilege until Mr. Fletcher, the American chargé d'affaires in Peking, was approached by Mr. Bland, and informed by him of the despatch of Prince Ching to Sir Ernest Satow in 1903. This coincides with the remark made by you in one of our meetings that the just-mentioned despatch was never communicated to the American Government. Of course we have now to face and deal with these facts, but I think it would really be too hard if we as foreigners should have to suffer most for a deed enacted by a countryman of yours; and if it should really be impossible to repel the Americans by our joint action, then I sincerely hope you will let the British and Chinese Corporation bear their share in the rearrangement of engineering section.
Believe me, &c.
E. RENDERS.
3
Inclosure 5 in No. 1.
Mr. C. S. Addis to M. Rehders.
London, August 30, 1909.
(Telegraphic.)
HILLIER wires :---
"Telegram of the 29th August received. American Government now request Chinese Government consent to modification loan agreement in order to admit American banks as signatories. Do you think it possible this demand may be pretext in order to gain time for American market, which is unprepared?"
Re foregoing, we have wired Hillier as follows :—-
"Re your wire of 30th, in our opinion the only way out of the difficulty is for Chinese Government to grant preliminary contract for whole line Hankow-Chengtu, increasing amount of loan correspondingly and providing for division of four equal engineering sections."
Inclosure 4 in No. 1.
(Telegraphic.)
Mr. C. S. Addis to M. Rehders.
London, August 25, 1909. HAVING learned Americans intend claim engineer half Ichang-Chengtu extension, we have accordingly instructed Hillier not to conclude agreement until rearrangement of engineering sections whole Hankow-Chengtu line arising out of admission of American participation has been settled between the groups upon an equitable basis.
659